EUR/USD trims losses, still in red below 1.1500

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  • The index rebounds from fresh lows in the 1.1435/30 band.
  • The greenback drops t0 95.80 where it met some dip-buyers.
  • Italy, US-China trade effervescence continues to drive mood.

EUR/USD tumbled to the 1.1430 region earlier in the session but managed to regain some buying interest and climb as high as the boundaries of 1.1490, where it lost some traction.

EUR/USD looks to Italy, yields, trade

Despite the rebound, the pair remains entrenched well into the negative territory so far this week, down for the second session in a row on persistent jitters stemming from Italian politics and a resurgence of the trade effervescence in the US-China trade front.

In fact, yields of the Italian 10-year reference retreated from recent tops and helped spot to regain some ground lost, although the political/fiscal situation in Italy keeps showing no light at the end of the tunnel for the time being.

Speaking about Italy and its dispute with Brussels, FXStreet’s Senior Markets Analyst Joseph Trevisani said: “The EU cannot wait indefinitely for the market to punish Italy for its deficit because the longer and farther Italian bonds fall the greater the chance of Eurozone contagion. Nor and for the same reason, can it condemn outright the Italian choices. Diplomatic language concealing the reality that Italy is a sovereign nation is the only answer”.

On the US-China trade dispute, President Trump was once again on the wires reiterating that China is still not ready to clinch a deal, threatening at the same time to impose fresh tariffs on additional $267 billion of Chinese products.

EUR/USD levels to watch

At the moment, the pair is losing 0.15% at 1.1475 facing the next support at 1.1432 (low Oct.9) seconded by 1.1331 (200-week SMA) and finally 1.1299 (2018 low Aug.15). On the flip side, a break above 1.1542 (high Oct.4) would target 1.1561 (10-day SMA) en route to 1.1630 (21-day SMA).


	EUR/USD trims losses, still in red below 1.1500

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